Article Courtesy of The San Diego Daily Transcript
Published February 3, 2005

Sen. Denise Moreno Ducheny (D-San Diego) proposed a bill Feb. 2, similar to the one she offered last year, aimed at protecting homeowners in common interest developments from non-judicial foreclosures by their homeowners associations.

The proposal responds to complaints from homeowners who have had their homes foreclosed upon for a small amount of delinquent dues. Senate Bill 137 prohibits a homeowners association from using non-judicial foreclosures for delinquent assessments of less than $2,500. It provides that homeowners associations may collect such debts only through a judgment in small claims courts or by placing a lien without foreclosing on the property.

Last years legislation was passed in the Senate and the Assembly but was ultimately vetoed by the governor. Sen. Ducheny said she will work with the administration to reach a consensus on this issue.

Despite last years setback, I am confident that the governor will work with me in this new session to protect California homeowners, said Sen. Ducheny. This issue is too important to Californians to allow this practice to continue.